The Paint Brush Cover
DEAL
EPISODE SUMMARY
🕓 Air Date: April 4, 2014
Asking For:
$50,000 for 10%
Investor:
Lori Greiner
Deal:
$200,000 for 20%
PRODUCT SUMMARY
The Paint Brush Cover is an airtight cover designed to preserve wet paint brushes for extended periods, preventing them from drying out and saving time and money for painters.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Liquid Concepts, the brains behind the Paint Brush Cover, comprises three passionate individuals: Sal DePaola, John DePaola, and Anthony Caputo. With a cumulative experience of over 60 years in the painting industry, these founders have honed their craft and identified a common pain point among painters – the hassle of preserving wet paint brushes between uses. Located initially in their garage-turned-lab, the trio embarked on a mission to revolutionize the painting industry.
Their frustration with traditional methods of brush preservation, such as plastic wrap, sparked the idea for a more efficient solution. Drawing from their extensive experience in the field, they conceptualized the Paint Brush Cover – a simple yet ingenious invention designed to keep paint brushes moist and ready for use, even after extended periods of storage. Driven by their firsthand knowledge of the challenges faced by painters, Sal, John, and Anthony meticulously developed and tested their product.
Their dedication to innovation led them to create an airtight cover that preserves the moisture in wet paint brushes, effectively preventing them from drying out. This breakthrough not only saves painters time and money but also enhances the longevity of their brushes. Their journey from professional painters to successful entrepreneurs is a testament to their ingenuity and perseverance. Through their shared vision and commitment to quality, Liquid Concepts has emerged as a pioneering force in the painting industry, offering a solution that addresses a longstanding need for painters worldwide.
The Product
The Paint Brush Cover, developed by Liquid Concepts, is a game-changing solution for painters seeking to preserve the integrity of their brushes between uses. This innovative product boasts a simple yet effective design, consisting of a durable plastic cover that fits snugly over paint brushes of various sizes.
Functioning as an airtight seal, the Paint Brush Cover locks in moisture, preventing paint brushes from drying out over time. This ensures that painters can pick up right where they left off, without the hassle of cleaning or replacing dried-out brushes. Whether it’s a quick break for lunch or an extended hiatus between painting sessions, users can trust that their brushes will remain in optimal condition.
The benefits of the Paint Brush Cover extend beyond convenience, offering substantial time and cost savings for both amateur and professional painters alike. By eliminating the need for wasteful plastic wrap or makeshift coverings, this product streamlines the painting process and enhances overall efficiency.
Customers can purchase the Paint Brush Cover directly from retailers or online platforms, with a retail price of $3.99 per unit. Priced competitively at $2 for wholesalers, this product presents an attractive solution for businesses looking to stock up on painting essentials. With its widespread availability and affordable price point, the Paint Brush Cover has quickly become a must-have accessory for painters worldwide.
How It Went
The company’s position before Shark Tank
Liquid Concepts has demonstrated strong performance and positioned itself as a leader in the painting industry with its flagship product, the Paint Brush Cover. The company has seen steady growth, having sold 17,000 units and generated $35,000 in revenue. Impressively, 50% of this revenue was generated in just the past three months, indicating a rapid acceleration in sales. The company’s success is bolstered by strategic partnerships with retailers and wholesalers.
Currently, Liquid Concepts supplies its product to retailers at a price of $3.99 per unit, while wholesalers can purchase it for $2, resulting in healthy profit margins. Partnerships with major retailers like Walmart are in progress, with discussions underway to secure distribution deals. Additionally, the company has established distributors in six different countries, expanding its global reach and customer base. In terms of funding, Liquid Concepts sought $50,000 for a 10% stake in the company on Shark Tank.
With letters of intent for hundreds of thousands of units and negotiations with major retailers like Bunnings, the Home Depot of Australia, Liquid Concepts is well-positioned for further expansion. The company’s structure is likely simple at this stage, with Sal DePaola, John DePaola, and Anthony Caputo serving as the primary decision-makers and executives. As the company grows, it may consider expanding its team and organizational structure to accommodate increased demand and operations. Overall, Liquid Concepts has demonstrated promising growth potential and is poised to capitalize on opportunities in the painting industry.
The Negotiations:
The negotiations on Shark Tank for Liquid Concepts’ Paint Brush Cover were intense and competitive. Initially seeking $50,000 for a 10% stake, the founders received multiple offers from the sharks. Lori Greiner made the winning offer, proposing $200,000 for a 20% equity stake, along with an additional $100,000 to assist with inventory restocking and initial purchase orders. Her offer was compelling, as it provided both substantial funding and valuable expertise in getting products into retail stores.
Other sharks also made enticing offers, including Robert Herjavec’s offer of $50,000 for 20% equity and Kevin O’Leary’s offer of $100,000 for 5% equity plus a royalty of 10%. Barbara Corcoran and Lori engaged in a bidding war, with Barbara eventually offering $200,000 for 20% equity, with an expiration date on her extra $100,000 offer.
Ultimately, the founders decided to accept Lori Greiner’s offer, recognizing the immense value she brought to the table in terms of funding, connections, and expertise in retail distribution. Despite the disappointment of not being chosen, the other sharks acknowledged Lori’s strategic move and congratulated the founders on securing a deal that would undoubtedly propel Liquid Concepts to new heights in the painting industry.
